I’ve been thinking along the same lines. But I keep coming back to the question of security overhead.

Everything that has a boundary must maintain that boundary. Maintaining boundaries takes energy.

So for example, if you have a yard that abuts wild space, you have to maintain the line between yard and weeds, or the weeds will take over (eventually). Every cell of every living thing must maintain its lipid outer layer, or succumb to apoptosis, etc.

Taxation is theft. But even if we succeed in abolishing it, one must still outlay for security. I would love to find out what the expected cost of security is, in general, and whether this cost scales up or down with entity size. Do nations spend more or less on security than cities? Cities more or less than tribes? Bodies more or less than cells? Etc. etc.

All of this is putting aside the moral question that you posed, which has to do with what happens to the tax money once you’ve lost it to the State. The answer is, ironically, nothing.

A currency-producing State doesn’t need tax revenue to fund operations. It manifests currency in any volume it pleases. Taxation is the means by which the State forces its subjects to need its otherwise worthless currency units.

So I guess from my perspective, paying taxes or not has little impact on the actions of the currency producing State apparatus. It only affects those smaller government bureaus that lack a money printer. (And even those can take on debt, which is a kind of printing since those debt obligations are dematerialized, bundled and traded). 

 I understand what you're saying. I know the government doesn't really use my tax dollars for these things - they print whatever thet need.

This is more about peace of mind. Seeing the fruits of my labor stolen is harmful to my soul. I feel infinitely better not earning income and focusing on bettering myself. It's had an incredibly positive impact on me, my wife, and my family. 

I'm a better human being today because of this way of living, but I understand it's not for everyone.